What to do if my SSN was stolen?
<div class="user-question">My social security was stolen, and since Covid I have not worked by the books, and I lost my vehicle. My credit is messed up, I can't get work because when they run my background check it's all over the place, because of all these hackers because of the T-Mobile data breach and then we're on a college data breach and so many other data breaches that it's crazy. I just need help, I need guidance somehow.</div>
Hey there, I'm so sorry you're dealing with this & hope that this can help.
First, you're not alone.
Massive breaches like T-Mobile and college hacks have exposed millions to identity theft. It’s overwhelming - but you can rebuild. Here's a step-by-step to regain control.
Psst... to avoid this getting too long, we've decided to divide this into a three-part series. See our deep dive on credit repair services and how to get out of secured credit cards.
Step-by-step identity recovery plan
1️⃣ Report the identity theft: file an official report with the FTC: IdentityTheft.gov
2️⃣ Freeze your credit: contact Equifax, Experian, and TransUnion to place a free security freeze on your credit. This stops anyone from opening new accounts in your name.
3️⃣ Get your reports & dispute fraudulent items: pull all three reports and flag any accounts or inquiries you didn’t initiate.
<div class="frich-tip">Frich tip: Know Your Rights: Under the Fair Credit Reporting Act (FCRA), you have the right to dispute any inaccurate information, and credit bureaus are required to investigate and correct errors, usually within 30 days. You're also entitled to a free credit report from each bureau every 12 months via AnnualCreditReport.com.</div>
4️⃣ Get an identity theft affidavit: if the theft impacts background checks or employment, use your FTC report as part of an affidavit to explain discrepancies to employers or creditors.
How to deal with accounts in debt collection
Alright, now let's walk through what you can do to navigate unpaid debt - the most damaging thing on your credit report - so that you can start rebuilding.
Most people seek credit repair because they have delinquencies or debt collection on their credit reports. However, your credit report is like a report card; it’s almost impossible to change the grade if you didn’t earn it. While credit repair agencies may promise to remove negative items, they can only do so if the information is inaccurate or outdated.
<div class="frich-tip">Frich tip: Take a look here at some debt consolidation options & see if you qualify for any debt relief! Repaying your debt is the best thing you can do to repair your damaged credit score.</div>
Understand the impact of delinquency and charge-offs
When you fall behind on payments, it’s essential to take action before the account is charged off. Delinquencies damage your credit score, but charge-offs are even more serious. A charge-off occurs when a creditor writes off your debt as a loss, typically after 120 days of nonpayment on loans or 180 days of nonpayment on credit cards. This doesn’t erase your obligation - it’s just an accounting move. Most creditors will either try to collect the debt themselves or sell it to a debt buyer.
Even though negative marks remain on your credit report for seven years, their impact lessens over time as you build better credit habits.
Negotiate with your original creditor
If you are in collections but still with the original creditors (whoever provided you the credit product), you can call and negotiate with them. They will often remove some interest and fees, in exchange for catch-up payments if your account hasn’t been closed. If your account has been closed, they will often settle with you for a reduced amount. While settling is better than not paying at all, it’s less favorable in credit scoring.
<div class="frich-tip">Frich tip: Take a look here at some debt consolidation options & see if you qualify for any debt relief! Repaying your debt is the best thing you can do to repair your damaged credit score.</div>
Know who you’re dealing with: collectors vs. debt buyers
1️⃣ Collectors working for the original creditor: these agencies are hired to recover money owed. They usually try to collect the full balance but will agree to a reduced amount. If you can offer a lump sum, you can get the best discount. Payment plans are also possible, although they may require a higher amount to account for the risk.
2️⃣ Debt buyers who now own the debt: these companies buy charged-off debt for a fraction of the balance and hire agencies or law firms to collect. By this point, the charge-off is on your credit report. If you pay, the item will be updated to “paid” or “settled.” Modern credit scoring models, such as recent versions of FICO and VantageScore, don’t penalize paid charge-offs, but older versions may still do so.
Debt buyers usually report your balance to the credit bureaus to pressure you into paying. The good news? A lot of them are open to removing the collection from your credit report once you’ve paid - just make sure to get that agreement in writing first. However, they’re also quick to escalate to legal action if ignored. Lawsuits are not only bad on your credit report, but now that court documents are online, they can show up when someone googles your name.
It’s super important to deal with debt in collections - otherwise, it’ll keep dragging your credit down with ongoing negative reporting. Even if you use credit builders to improve your credit, new debt collection accounts will diminish your ability to see significant improvements in your credit score.
What to do if you get sued over your debt
If you get sued over a debt, don’t just brush it off. Ignoring it could lead to wage garnishment or even a lien on your stuff. Tools like SoloSuit can help, or you can reach out to the law firm and try to work out a payment plan - they’ll often hit pause on the lawsuit if you do. They’re suing to prompt you into action, not to prolong it. But if you ghost them, it’ll cost you way more in the end. Check out our guide to dealing with delinquent debt here.
Here’s a script that you can use:
Credit issues - especially when caused by identity theft - can feel deeply personal and completely overwhelming.
But remember: your credit is fixable, and you don’t need to pay someone else to do what you can do yourself. From understanding your rights under the FCRA to exploring credit builder products and using secured cards wisely, the tools to take back control are within reach.
Be patient with the process, protect yourself from scams, and keep building - because the most powerful credit repair plan is the one you build for yourself. You got this!
Good luck -- Gwyneth
